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Export over the first 4 months has numerous orders

Update: 21-05-2019 | 10:48:41

Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) officially has taken effect from January 2016,along with the ongoing US - China trade war. These have made impacts on export enterprises in Binh Duong. Many enterprises in the province have signed export orders by the end of 2019, even some enterprises have signed orders until the end of Q1-2020; order numbers also increased by 10-15% over the same period last year.

By this time, many businesses in the province have singed orders until the first quarter of 2020. In photo: Production line at 3-2 Garment Company.

Many advantages

In 2019, with positive impacts from enhancing institutional reforms, creating a good investment and business environment, attracting investments, and the elimination of tariff barriers according to CPTPP, Vietnamese goods are expected to gain favorable conditions for export to CPTPP member countries. According to experts, because CPTPP officially has taken effect from January 2016, along with the ongoing US-China trade war, it has a positive impact on Binh Duong's export enterprises.

Truong Thuy Lien, Vice Chairman of Binh Duong Leather Footwear Association, Director of Lien Phat Company Limited (Di An town), said that due to increasing consumer demand in key markets of the domestic leather footwear industry, plus positive effects from trade agreements, especially CPTPP, export turnover of the domestic leather and footwear industry in general and of Binh Duong in particular continued to rise (20%) compared to the same period last year. Lien Phat Company, from the beginning of the year, has got high volume of orders, but due to difficulties in labor, the company was not able to accept all orders. Currently, the company only signed orders till February 2020.

Ms. Lien also said, besides the opportunities brought by free trade agreements, Vietnam leather and footwear industry still faces a number of challenges, such as an increase in labor costs, automation capability, trade protection trends of some markets ... Therefore, in order to make good use of development advantages from integration, Vietnamese leather footwear enterprises need to comply with product quality standards, proportions of localized materials, as well as other committed social responsibilities.

According to Nguyen Liem, Chairman of Lam Viet Company, thanks to appropriate and effective policies of the State, since the beginning of the year, wood enterprises in the province have gained many advantages and order numbers also increased. Besides, at present, equipment and machinery is in wood industry changing constantly, enterprises actively applied modern technologies into production, so productivity of factories increased, and the quality of goods has also increased to attract many international customers. These results are the driving force for wood enterprises to boost production and export early in 2019, contributing to completing the 2019 export target of the province.

Do not be subjective

Le Hong Phoa, Chairman of Binh Duong Garment Association, said that at present, their member enterprises had abundant export orders. Many textile and garment orders tend to move from China to Vietnam to reduce damages of the US-China trade war. Besides, the advantages from free trade agreements, especially CPTPP, are being exploited well by domestic textile and garment enterprises. Mr. Phoa stated that in 2019, orders of member enterprises would increase by 10 - 15% over 2018.

Meanwhile, Ms. Lien said that since Lien Phat's products were exported to European markets, did not pass by China, so US imposed tax on Chinese products did not affect exports of the company.

Answering the question that the US imposing taxes on Chinese goods would have which impact on Vietnam, Pham Van Xo, Chairman of Binh Duong Import-Export Association, said that US action against China would create both benefits and challenges for Vietnam. Because when the US imposed taxes on Chinese goods, disrupting the market, the Yuan would be devalued, prices of Chinese goods would be cheaper. Since then, Chinese goods would flow through other markets, including Vietnam.

According to Mr. Xo, due to this tax imposition, many businesses in China moved their factories to other countries, including Vietnam. Our country has many industries that need skillful craftsmanship, have a geographical position adjacent to China, so it is a favorable condition for enterprises to move their factories to our country. However, this is also a challenge to Vietnam, because when Chinese factories move to Vietnam, our machinery and factories is in danger of becoming old and obsolete. Besides, many Vietnamese products still have to import input materials from China.

Reported by Phuong Le – Translated by Ngoc Huynh

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